
As baby boomer parents age, 68% of millennials and Gen Z have received or expect to receive an inheritance, according to a survey conducted by USA TODAY Blueprint in November.
The survey consisted of 1,255 Americans ages 18 to 42 and asked about family inheritances, debt and financial support of aging parents. It projected that baby boomers will pass down more than $84 trillion over the next two decades, with the average inheritor expecting about $320,000. Some have dubbed this “the great wealth transfer.”
Of young Americans expecting to inherit assets, 82% expect to receive cash, 62% expect real estate, 41% expect a vehicle, 32% expect investments and ownership stakes and 19% expect other property.
Home values have increased nearly 500% since 1983, when boomers first began buying homes. Since then, they’ve had time and favorable economic factors in which to further increase their home assets. It comes as little to no surprise that so many young Americans expect to inherit real estate from boomer relatives.
While the average expected inheritance is $320,000, the majority of those surveyed expect to receive less. Here’s how much they expect to gain:
- $100,000 or more: 51%
- $200,000 or more: 33%
- $500,000 or more: 15%
- $1 million or more: 6%
What’s one to do with all that inheritance? Most plan to save or invest their money. Here’s the breakdown of inheritance plans for millennials and Gen Z:
- Savings and/or investments: 76%
- Paying off debt (excluding mortgage): 40%
- Travel: 22%
- Pass on to children: 21%
- Paying off mortgage: 20%
- Home improvement: 17%
- New property purchase: 16%
- Education (for children or for self): 15%
- Charitable donation: 8%
- Gift to friend or family member: 5%
- Luxury spending: 4%
Notably, while the great wealth transfer may help young Americans fund their futures, 57% of millennials and Gen Z surveyed believe that it will perpetuate wealth inequality.
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